UPDATE 1-India plans $2.8 bln ONGC stake sale by early Dec - sources

* India targets about $9.5 bln through stake sale by March

* ONGC subsidy burden seen falling in current fiscal year-
source

* No plan to sell stake in any other oil co this year -
source
(Adds details)

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By Manoj Kumar and Devidutta Tripathy

NEW DELHI/MUMBAI, Nov 5 (Reuters) - The Indian government
plans to sell a 5 percent stake in energy explorer Oil and
Natural Gas Corp (ONGC) in the last week of November
or the first week of December, two sources directly involved in
the deal said on Wednesday.

Prime Minister Narendra Modi's government has introduced
long-awaited reforms in the oil sector, freeing diesel prices
and raising natural gas prices - measures which should be
positive for ONGC and other oil marketing companies.

Presentations to investors on the share sale, worth about
$2.8 billion at current market prices, are likely to start from
Nov. 17 and will run for about a week, said the sources,
declining to be named as the details were not yet public.

"There is a plan to hold roadshows in the U.S., London and
Singapore from Nov. 17 to 23 to attract global investors," said
one of the sources.

The share sale is part of the government's plan to raise a
record $9.5 billion via asset sales in the current financial
year through March 2015 to help plug its fiscal deficit.

Aradhana Johri, secretary at India's divestment department,
which oversees the sale of holdings in state companies, was not
immediately available for comment.

The government has appointed five banks - Citigroup, HSBC
Securities, ICICI Securities, UBS Securities and Kotak Mahindra
Capital - to manage the sale.

In 2012, the government sold 5 percent of ONGC to raise
about 140 billion rupees ($2.3 billion). It retains about 69
percent of the company.

ONGC, the country's biggest oil explorer, plans to raise
overseas output in two stages to 60 million tonnes of oil plus
oil-equivalent gas by 2030, or 1.2 million barrels a day.

After oil sector reforms, ONGC's share of subsidies is
expected to fall substantially this year, said the official. He
also said there was no plan to sell stakes in any other oil
company this year.
(1 US dollar = 61.5100 Indian rupee)
(Additional reporting by Devidutta Tripathy; Editing by Douglas
Busvine and David Holmes)